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November 12, 2007

BLOOMBERG'S BRIBES

NY Post, Editorial

It's easy to cheer Mayor Bloomberg when he criticizes the all-too-common practice of "bribing" businesses to operate in New York City.
...
"I've always been opposed to bribing companies to come and to stay [in the city]," he added, echoing earlier statements. In October 2003, Bloomberg boasted, "We've essentially ended corporate welfare as we know it."

Unfortunately, that's not entirely accurate.

Consider:

Atlantic Yards. Megadeveloper Forest City Ratner has negotiated more than $550 million from the city - and that's before tax-exempt bonds.

Other boondoggles listed: East River Science Park
Yankee Stadium
Citi Field
Pfizer
Bank of America
Goldman Sachs

The Post estimates a grand total of corporate subsidies around $688 million a year and in the final analysis has determined that "a lot of these deals make sense," even though they won't make a difference to the funadamental problems with NYC's economy.

article

NoLandGrab: We're not sure where the Post is getting the $550-million figure. Atlantic Yards watchdogs have the number currently pegged at $205 million with more to come from "known unknowns" (or is it "unknown knowns?").

Posted by lumi at November 12, 2007 6:39 AM